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BUSINESS OPPORTUNITIES IN GREENLANDPROJECT OVERVIEW 2018

BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 20182

BUSINESS OPPORTUNITIES IN GREENLAND PROJECT OVERVIEW 2018

Published by the Arctic Cluster of Raw Materials (ACRM) in collaboration with the Confederation of Danish Industry (DI), February 2018

di.dk/english

acrm.dk

Prepared by

Up Front Communication ApS, Managing director Hans Bak

COMMUNICATION APSFrontUP

Up-North ApS, Managing director Martin Schjøtz-Christensen

The publication was made possible through the financial support of The Bank of Greenland

Edited by Mads Qvist Frederiksen, Head of Secretariat, ACRM Photos: Hans Bak/UP Front Communication ApS: Page 14 and 57. Kalaallit Airports: Page 60. Ivars Silis: Page 56. Kommuneqarfik Sermersooq: Page 45. Mads Pihl/Visit Greenland: Page 4, 6, 41 (bottom) and 42 (bottom). Petter Cohen, Xtravel/Visit Greenland: Page 42 (top). Rebecca Gustafsson/Visit Greenland: Page 41 (top). Print: Kailow Graphic A/SISBN 978-87-7144-135-2 (print)250.02.2018

http://di.dk/english/Pages/English.aspx

BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 3

ARCTIC CLUSTER OF RAW MATERIALS

The Arctic Cluster of Raw Materials (ACRM) is established by Greenland Business Asso-ciation (GE), The Confederation of Danish Industry (DI) and the Technical University of Denmark (DTU). The cluster was originally funded by the Danish Industry Foundation (IF).

PurposeACRM is a platform for companies with interests, experience and competences within the extractive industries. ACRM’s main purpose is to strengthen the competitiveness in Greenland and Denmark in the industry and contribute to sustainable growth and employment in both countries. To obtain this goal, ACRM will build up and support busi-ness cooperation, industry consortia and business concepts. Also, ACRM will provide technology and skill enhancement for Danish and Greenland companies in the Arctic extractive industries, especially in Greenland.

ActivitiesACRM will work closely with strategic knowledge-exchange networks, academia and industrial innovation processes. The establishment of consortia within the extractive industries and support industries will secure both the level of competences in the mar-ket and prepare companies for the industry standards, contracts, certification and other necessary requirements. This will be achieved through conferences, round table discus-sions, industry seminars and workshops in Greenland etc.

Member RequirementsMembers of ACRM commit to share their knowledge and competences with other mem-bers to make sure the industry cluster will be a visible platform, which can promote Dan-ish and Greenland companies on a high political and commercial level.

Members will get access to all cluster activities, including exhibitions in Canada and workshops in Greenland.


The Arctic is a unique place to do business in and from. The four million people living in the region are spread around countries like Canada, Russia and the USA – and at the centre of them all is Greenland. There are many potential business opportunities across the region. Whether it is fishing, tourism, mining or infrastructure, the projects are there and so are the ambitions. Companies working in the Arctic will have to consider the in-genious people who has inhabited the region for thousands of years as well as the planet when doing business in the Arctic. Here, the UN Sustainable Development Goals have an important role to play in guiding strategies and ensuring social licenses to operate. At a regional level, the Arctic states and other international actors are increasingly engaging in the region making it a venue for both cooperation and competition over economic and security interests.

The Sustainable Development Goals offer a good framework for cooperation in the Arctic. The universal terminology allows for the public and the private sector to set direc-tions and ensure sustainable economic development.

Economic development is important in the Arctic. The region should not only be associ-ated with protective national parks but also as a place for doing business, making new investments and seizing unique opportunities. Obviously, climate change has a particu-larly strong impact on the vulnerable region. Yet, the global temperature increase allows new economic opportunities in the Arctic through new seaways, tourism and access to resources. Climate changes are influencing the melting of permafrost and ice caps as well as being increased through feedback loops in the Arctic.

This report takes its departure in the Arctic mineral extraction industry and highlights the current prospects and developments in one arctic state: Greenland. It showcases some key facts about Greenland’s administration and legislation as well as operational insights. But most importantly, it gives you an extract of the main investment opportuni-ties found in Greenland’s mineral rich underground.

The report is developed by the Arctic Cluster of Raw Materials (ACRM), which is an EU accredited cluster of excellence comprising of Danish and Greenlandic enterprises. ACRM provides company profiles and industry information on Greenland in all phases of the mining life cycle.

To learn more about ACRM, please check our webpage at www.acrm.dk

We hope you will enjoy the report.

Mads Qvist Frederiksen Head of Secretariat, ACRM

FOREWORD

http://www.acrm.dk


CONTENTS 8 A Nationless area in the Arctic 11 New Arctic shipping routes 12 The Arctic Circle and Greenland

15 OPERATING IN GREENLAND 17 Greenland at a glance

18 MINERALS AND HYDROCARBONS 19 The Public Administration 22 Mining projects 22 Existing and potential mining projects in Greenland 24 ¶ Greenland Ruby 26 ¶ Hudson Greenland 28 ¶ Ironbark Zinc 30 ¶ TANBREEZ Mining Greenland 32 ¶ Greenland Minerals and Energy 34 ¶ General Nice Development 36 ¶ North American Nickel 37 ¶ Alopex Gold 38 ¶ FBC Mining 39 ¶ Dundas Titanium 40 ¶ Alba Mineral Resources

43 INFRASTRUCTURAL DEVELOPMENT PROJECTS 44 Collaboration and Investments 45 Selected infrastructure projects in key figures 46 ¶ Sikuki – Nuuk Harbour 47 ¶ Kalaallit Airports 47 ¶ Mittarfeqarfiit 48 ¶ Nuuk Airport (Kalaallit Airports) 49 ¶ Ilulissat Airport (Kalaallit Airports) 50 ¶ Qaqortoq Airport (Kalaallit Airports) 51 ¶ Tasiilaq Airport (Mittarfeqarfiit) 52 ¶ Ittoqqortoormiit Airport (Mittarfeqarfiit) 53 ¶ Kangerlussuaq – runway upkeep, new port and road to Sisimiut 54 ¶ Siorarsiorfik – Nuuk City Development

56 HYDROPOWER AND CLEAN ENERGY 58 Hydro plants in Greenland

59 KEY ORGANISATIONS 61 OUTLOOK 62 SOURCES


The Arctic covers an area of about 14.5 million km2 of which some parts are currently outside existing terri-torial boundaries. The Arctic states (Canada, Russia, Norway, the USA and the Danish Realm) are all work-ing to extend their territorial rights in the North.

The efforts are rooted in a wish to establish rules for shipping in the area and to benefit from the raw material deposits that may be found there. The latter is, however, currently of less significance, partly because the raw materials located outside current territorial boundaries are difficult to access, and part-ly because it is assessed that 80 per cent of the Arctic raw material deposits are found within already estab-lished boundaries.

Exclusive Economic ZoneAll states are currently allowed to establish an exclu-sive economic zone 200 nautical miles off their coast-line. Within this zone, they have the exclusive right to explore and exploit the natural resources in the sea, on the seabed and subsoil, and to any economic opportunities that may arise. The states are also per-mitted to enforce environmental jurisdiction in their zone.

A NATIONLESS AREA IN THE ARCTIC

The 1982, United Nations Convention on the Law of the Sea (UNCLOS), however, entitle states to extend their territorial demands if they can prove their con-tinental shelf reaches beyond 200 nautical miles. This will grant them an exclusive right to exploit natural resources on and below the seabed. Exclusive fishing rights are not part of UNCLOS.

Danish Submissions to UNCLOSThe Kingdom of Denmark has submitted three partial submissions relating to Greenland to the Commission in 2012, 2013 and 2014. On 15 Decem-ber, 2014, the third partial submission – regarding the area north of Greenland – was submitted cover-ing an area of 895,541 km2. The partial submission for Greenland from June 2012 concerned the area (about 114,929 km2) south of Greenland and the partial submission November 2013 concerned area (about 61,913 km2) northeast of Greenland from.


Iceland

Greenland

Russia

Canada

SwedenFaroeIslands

AlaskaU.S.

Norway

North Pole

Finland

Nationless area in the Arctic

Existing boundaries Nationless area Lomonosov Ridge

Source Nordregio


North Pole

New Arctic shipping routes

North West Passage North East Passage Central Arctic shipping route


Container ships using the Northern Sea Routes across the Arctic can cut the length of their journey by 40% compared with travelling via the Suez Canal. New shipping routes are gradually opening up as the sea ice in the Arctic region retreats. In the past, it was only safe for ships to sail along the Northern Sea Route in the summer time but in December 2017, the first tanker sailed unassisted from South Korea to the Sabetta liquefied national gas (LNG) terminal in northern Russia.

The volume of Arctic sea ice hit record lows in January 2017. This will significantly reduce sailing times between Asia and Europe/America. Since 90 per cent of international trade is shipped by sea, new and shorter shipping routes will have an enormous impact on global trade. With the Arctic shipping routes, the shipping industry will be able to reduce its exposure to many of the challenges it is faced with today. These include bottlenecks in congested wa-ters around the Suez Canal, the Panama Canal and the Strait of Malacca as well as the safety problems related to piracy. On the other hand, new challenges appear in relation to crews and equipment having to deal with harsh weather conditions and drifting ice-bergs – even in the summer.

Three Shipping RoutesThe Arctic region basically offers three shipping routes:

° The North East Passage north of Russia between Europe and Asia/West America

° The North West Passage north of Canada between East America and Asia/West America

° The Central Arctic shipping route across the North Pole accessing to Europe and East America from Asia/West America.

The North East Passage is particularly interesting from a European perspective. A trip from Rotter-dam to Yokohama north of Russia is only 8,500 km, or 12,000 km shorter than through the Suez Canal. The trip from Rotterdam to Vancouver north of Rus-sia is 12,500 km, or 3,500 km shorter than through the Panama Canal. The North West Passage is open for shipping roughly every seven summers, but is expected to be navigable every second summer from 2050. The route across the Arctic Ocean is not yet open for shipping, but navigability is expected to increase gradually so that by 2050 the area will be open during four months of the summer. This could potentially make Iceland a hub for transport between West America/Asia and Europe/East America. In 2017, a new super habour finished construction in the capital of Greenland, Nuuk, and new partnerships with ports and shipping companies in north America are being explored

Extreme Conditions Shipping in the northern regions, however, is not without challenges, particularly in relation to the un-predictable weather conditions. Storms, icebergs and extreme temperatures are just some of the circum-stances which both equipment and crews must be able to handle. Shipping in the area is therefore highly demanding in terms of safety. One consideration is the vulnerable Arctic environment and another is the fact that an accident in Arctic regions may have fatal consequences for the crew since it may take several days for help to reach the position. Therefore, cooper-ation between countries is of crucial importance.

NEW ARCTIC SHIPPING ROUTES


Infrastructure Greenland is an example of a frontier Arctic region with limited mining infrastructure and challenging physical circumstances, yet it has a quite well-devel-oped infrastructure compared to many other Arctic states and regions and is experiencing a significant increase in mining activity.

Licenses For instance, the number of mineral related licens-es has increased from 23 in 2002 to 120 in 2017. In short, Greenland’s extractive industry is a fine min-ing jurisdiction with favourable geology, a promining population and a government recognising the mineral resource industry to provide important future income and jobs, no minority land rights issues and a govern-ment take that is internationally competitive

Main Projects In the following, we go a step deeper and analyse the most promising mineral projects in Greenland as well as the main infrastructure development. Each project is described in the same way so it is easy to capture the key figures.

The Arctic is currently going through major changes and is increasingly attracting international atten-tion. Climate changes combined with technological progress present new challenges and opportuni-ties for the Arctic and its population. The recent ten year period has been the warmest ever recorded in the Arctic, and the region is expected to have icefree summers within the next 30 – 40 years. Beyond exist-ing and prospective petroleum resources, deposits in the Arctic of other mineral resources are substan-tial by any standards. Yet, many known reserves of minerals are not exploited because they are found in areas to which access is poor or very difficult.

White Ocean Looking at the primary mining areas in Greenland, it is a “White Ocean” of potential. It is not that Greenland has not been mined before. The extractive industry in Greenland has been a part of the country’s economy since the 1850s, with mining of cryolite, lead, olivine and gold.

Greenland has a major potential in the known geolog-ic occurrences along the coastline. What is under the Greenland ice sheet is, however, largely unknown.

THE ARCTIC CIRCLE AND GREENLAND


Iceland

Greenland

Russia

Canada

Sweden Faroe Islands

AlaskaU.S.

Norway

Finland

Western Greenland Barents Sea

Narsaq

North Greenland

Oil fields in Pechora & Yamal Megaproject

Alaska North Slope, Chukchi Sea & Arctic National Wildlife Refuge

Beaufort Sea,Mackenzie Delta

and Valley

1a

3

2

Yamalo-Nenets

Nenets

Shtockman

Valdez

Urengoi

SnøhvitLabrador

Nunavik(Quebec)

Nunavut

North West Territories

Yukon

Sakha

Krasnoyarsk

Taimyr

Chukotka

Komi

Mining and oil activities in the Arctic

Primary mining areas

Largest mining areas

Oil and gas production

Potential oil and gas reserves

Source Nordregio


On a global comparison, Greenland presents a stable political and legislative system with a general low risk business environment on par with other developed Western and Nordic countries. The challenges of a lightly populated vast country in an Arctic and Sub-arctic environment are naturally present, not unlike conditions found in regions of e.g. Canada, Alaska, Russia or Norway. As indicated in the GREENLAND BENCHMARKING REPORT 2016, Greenland gener-ally scores well on several principal macroeconomic and business environment performance indicators.

Strong EconomyGreenland has gone from a negative to a positive growth in gross domestic product (GPD) in recent years (+1.7, 2014 to 2015). The economy foundation is still highly dependent on the incomes from a single industry (fishing) and a yearly grant from Denmark. There are, however, positive benchmarking factors. The general government gross debt is low in Green-land and at a GDP around 15,000 M DKK, Greenland represents a small economy, but also one well posi-tioned to engage the global lending market. Bench-marked against comparable nations, Greenland is less indebted by far. In terms of inflation, Greenland generally scores well with an annual inflation of 0.3 per cent (January 2017), which is within the range of optimal preferred national inflation rates.

On the MovePerhaps Greenland has unfairly received somewhat negative presumptions in terms of business and in-vestment climate, but serious companies looking for new ventures and investment opportunities will do well to look past any bias when seeking growth and development opportunities in Greenland. Clear-

OPERATING IN GREENLAND

ly, some structural and infrastructural challenges are present, but so is the country’s drive towards solving them – an endeavour based on industrial development within minerals, infrastructure and housing development, hydropower and green tech-nology, as well as growth in established industries (fishing and tourism) and more. And an endeavour that will require local and inbound investments alike and create opportunities for a wide range of compa-nies.

Educational InstitutionsGreenlandic students have options for both mid and higher education in Greenland, but also enjoy full access to the Danish educational system. The University of Greenland (Ilisimatusarfik), The Build-ing schools (KTI) including The Arctic Technology Centre (ARTEK) along with the country’s trade and services schools generally have good ties with inter-national educational institutions and seek collabora-tion opportunities with relevant businesses. In 2017, ARTEK inaugurated larger facilities in Sisimiut under their “Vision 125”, marking a reinforced focus on engineering in the Arctic region. The Greenland School of Minerals and Petroleum and The Greenland Maritime Centre are examples of another two educa-tional institutions striving to tailor courses towards skills needed in their respective sectors.

Recognisable LegislationLegislatively, Greenland is comparable to the Nordic countries, especially Denmark. Though not a member of the EU since 1985, much of the legislative frame-work applied to trade has been updated recently (2014 – 2017) to closer match the legislative frame-work of Denmark and the EU. The basis is a two court


company. Harbour berth, depth and sea bunker-ing options vary, but generally services adhering to MARPOL standards are available. In total, there are 16 city ports and 60 smaller settlement harbours in conjunction with 14 airports, seven heliports and 37 helistops.

Friendly Business EnvironmentThe majority of large companies in Greenland are either completely or partially state owned. Privately held small and medium sized companies are predom-inant in the business landscape. There are several options to start or conduct business in Greenland – and even more are expected with amendments to the Companies Act originally due to be instated January 2017, but this date has been pushed back in accord-ance with the need for other related legislative up-dates. In general, inbound companies can choose between setting up a subsidiary, a registered branch office, a representative office or a taxable entity.

Personal income tax in Greenland is not incremental related to earnings, but is at a flatrate of either 42 or 44 per cent depending on which of the five municipalities the taxpayer is eligible in. Corporate tax is generally 30 per cent plus a surcharge of six per cent, except for license holders within the extractive industries, where incentives policies offer an effective tax of 31.8 per cent. Greenland has a limited number of import duties, but no VAT system.

Open for BusinessGreenland-based companies typically hold decisive local knowhow and the experience to solve a wide range of tasks – be it auditing or legal consulting needs, services and supply, catering, transportation or construction. Many international companies have local branch offices and numerous local companies have strategic ties and/or affiliations to international partners, helping even smaller locally centred offices to punch well above their weight.

system with options for appeal on a shared responsi-bility with the Supreme Court in Denmark.

CommunicationsThe 4,600 km fibre optic cable running from New-foundland to Iceland has since 2009 connected to the capital of Nuuk and the southern city of Qaqor-toq. Combined with almost 50 radio transmitting stations on the west coast and satellite connections for the eastern and the most northern regions, this links Greenland internally and to the rest of the world in terms of tele infrastructure. Adding to this, the fibre cable has through 2017 been extended north to reach the cities of Maniitsoq, Sisimiut and Aasiaat. Further-more, radio transmission stations have been added and signals have been amplified on several locations. Cell phones, Internet and social media are widely used and common. Unpopulated areas generally require iridium phones. Currently, there is only one supplier of telecommunication/internet in Greenland – the publicly owned TELE Greenland, which plans to invest a collective sum of 800 M DKK in digital infra-structure going towards 2020.

Air and Seabased TransportationTransportation to/from and within Greenland is either by air or sea. The population is spread around the 44,087 km coastline, primarily living on the west coast. Larger cities have paved roads, but no cities are yet connected by such. Denmark, mainly Copen-hagen, and Reykjavik, Iceland to some degree, serve as hubs for international air traffic. Larger cities are reachable by plane; smaller settlements and remote locations by helicopter. International flights main-ly connect to Kangerlussuaq (west) and to Narsar-suaq (south). North Atlantic flights via Reykjavik also connect to Kulusuk and Constable point (east), Nuuk and Ilulissat (west) and to Narsarsuaq. Goods are primarily shipped via Denmark (currently Aalborg) with a few options via Canada and Iceland. Shipping patterns are however changing with a future, more globally focused, strategy from the national shipping


Official name Kalaallit Nunaat (Greenland)

Capital Nuuk

Institutional system Parliamentary democracy (self-governing country within the Kingdom of Denmark)

Area 2,166,086 km2

Currency Danish Krone (DKK)

Official languages Kalaallisut (Greenlandic), Danish

Religion Evangelical Lutheran

Ethnic groups Born in Greenland – 89.7%, born outside – 10.3% (2016)

Population 55,860 (Jan. 2017)

Urban population 48,248 (Jan. 2017)

Source: Statistics Greenland

Greenland at a glance


quantities and included coal, marble, lead, zinc, silver and cryolite (plus uranium related to research at the Risø Institute). In recent years, olivin and gold have been quarried. Notable mining endeavours include: Ivittuut/cryolite (1854 – 1987) 3,700,000 (t) ore; Qullisat/coal (1924 – 1972) 570,000 (t); Mestersvig/lead and zinc (1956 – 1963) 545,000 (t); Maarmori-lik (Black Angle)/lead, zinc and silver (1973 – 1990) 11,300,300 (t); Seqi/olivin (2005 – 2009) 1,200,000 (t); Nalunaq/ gold (2003 – 2013) 680,000 (t) – 11 (t) gold.

Mineral licensesAs of 5 February 2018, six (exclusive) licenses are granted for mineral exploitation. Three of these represent active operations, whereas the other three are either subject to further exploration/analysis by new stakeholders or put on standby due to feasibil-ity forecasts and market conditions. Almost 60 (ex-clusive) licenses for mineral exploration are granted, to which could be added numerous nonexclusive and small scale license categories. While some are more or less dormant, others see serious investments in exploration as operations move close towards an ap-plication for an exploitation license.

Typically, license holder information is updated twice a month and a yearly activity report is published by the Ministry of Mineral Resources, but it is advisa-ble to attend related conferences/seminars and join relevant networks/membership organisations to gain information on current and projected activities.

Hydrocarbon focused operations are currently at somewhat of an adjournment. A combination of declining crude oil prices and a challenging Arctic environment seems to have stifled the offshore inter-est. In 2011, the most recent appraisal drilling was carried out by Capricorn (Cairn Energy) off the west coast, but the company did not strike commercial quantities. Though some stakeholders have farmed out or relinquished their off shore licenses, several major oil and gas companies still retain exploration fields in Greenland. Proactive license policies have been instated by the government and seismic surveys are still pursued off the coast of northeast Greenland. Call for tenders on licenses blocks and “open door” procedures for certain areas are presented at two to three years’ intervals going towards 2018. Landbased searches have seen additional attention with onshore licenses granted in Jameson Land and a recently prepared Strategic Environmental Impact Assess-ment regarding Disko Island and the Nuussuaq Peninsula. As of February 1 2018, 13 (exclusive) exploration and exploitation licenses are granted for hydrocarbons, two of which cover onshore areas. However, six of these licenses are currently being surrendered. A similar number is seen for non-exclusive prospecting hydrocarbon licenses – howev-er most of these nonexclusives are due to expire.

Mining is not new in GreenlandAlthough Greenland is not an established mining nation per se, the country is not unfamiliar with an active mining industry: Coal mining in Greenland dates back as far as the late 18th century, while smaller quantities of graphite, copper, gold, silver and zirconium was mined from the mid to late 19th century. Mining in the 20th century produced greater

MINERALS AND HYDROCARBONS


Detailed information is availableOnline means are available to stakeholders seeking detailed geological and geophysical information and data on Greenland’s mineral or hydrocarbon resourc-es: Greenland Mineral Resources Portal, run jointly between MMR and GEUS and Greenland National Petroleum Data Repository, respectively. Geological maps, publications and additional data can also be found at the GEUS website.

Regulation Activities in relation to Greenland’s natural resources, both minerals and hydrocarbons, are highly regulated. All significant activates must be reviewed and approved before any prospecting, exploration or exploitation can be initiated. List of fees and indepth information is accessible at the website Govmin.gl, but the typical steps towards an operating business include obtaining an exploration license, reporting on field activities, reporting on geological findings and financial statements. Exten-sive and potentially intrusive exploratory activities may even require an Environmental Impact Assess-ment report (EIA) followed by a public hearing. Some distinctions apply to the processes related to hydro-carbons and minerals. The focus will be on mineral related activities in the following paragraph.

Social and Environmental Impact Assessments The process from exploration to exploitation will in-volve both a Scoping Study, a preconsultation, public meetings, an Environmental Impact Assesment (EIA) and a Social Impact Assessment report (SIA). The re-ports need to provide a comprehensive outline of the

The public administration Previously and formally known as the Bureau of Minerals and Petroleum (BMP), the Greenlandic authority on natural resources (oil, gas and miner-als) comprises different entities under the Ministry of Mineral Resources (MMR) and shares related responsibilities with the Ministry of Industry, Labour, Trade and Energy and the Ministry of Nature and Environment. One may encounter references to the BMP in documents or rapports predating 2013, referring to the former administrative organisation.

Representing a small administrative size, bottle-necks may ensue within periods of peak activity, but the stages towards obtaining an exploratory permit or settling on an exploiting agreement reflect well-regulated public sector principles known in western nations.

Strategy 2014 – 2018 Greenland’s oil and mineral strategy 2014 – 2018 is still in effect at the moment, but is due to be updated. Currently, the Mineral License and Safety Authori-ty (MLSA) and the Environment Agency for Mineral Resources Activities (EAMRA) both support the core obligations related to the responsibilities of the MMR. Typically, the specific legislative framework under-pinning the sector, including strategic and resource marketing related efforts, is formed and revised through the MMR. There is a vested focus on promot-ing the country’s natural resources to the extractive industry, which includes securing both a reasonable ROI for private parties and a fair government take – simultaneously making sure that regulations on en-vironmental and social impacts follow international best practices.


building and knowledge transfer; onsite/incountry processing, energy decisions and infrastructure; sociocultural values and traditions; as well as intern-ships, training and education and decommissioning.

A signed IBA predates the final political approval of plans for exploitation, development and closure/ decommissioning. No construction work (related to exploitation) can be initiated before the final approval.

Small scale mining licenses are only granted to Greenlanders (five years’ permanent/taxable residents) and are usually limited in terms of scope and investment needs.

Governing legislation, procedures/standard terms, rules for fieldwork/reporting, guidelines for EIA (2015) and SIA (2016) and more are available at the Govmin.gl website.

Signed IBAs are found under publications at the Naalakkersuisut.gl website.

project, opportunities, impacts and mitigating activi-ties. Whilst license holders tend to hire independent thirdparty consultancy to prepare the reports, the EIA and SIA are considered to be the licensee’s reports. Draft reports will be studied and reviewed by the ap-propriate government authorities followed by a public hearing of at least eight weeks. Following this, the fi-nal reports and a White Paper, addressing questions brought up through the process, must be prepared and made available to the public. General language requirements entail reporting in Greenlandic, English and Danish.

Impact Benefit Agreements Parallel to the White Paper preparations, the Impact Benefit Agreement (IBA) negotiations will commence. The negotiations are conducted as threeparty negotiations between the license holder/private company, the Government of Greenland and the appropriate ministries and municipality(ies). High priority items within the IBA negotiations include local content (recruitment of Greenlandic labour and engaging Greenlandic business); longterm capacity


The formal SIA process The Social Impact Assessment process-path towards final approval

Involvement of stakeholders throughout the process

1078

321

4

9

5 6

START

END

Scoping Study, collection of base line

data and draft Terms of Reference

(project description)

Pre-consultation(35 days)

Submission of draft SIA and application for

exploitation license

Terms of

Reference

Public consultation

(minimum eight weeks)

Preparation of

White Paper

Impact Benefit

Agreement (IBA)

Final SIA, White Paper and IBA negotiation

§ 16 exploitation license

§ 19, 43 and 86 approvals

Decision on political

approval


MINING PROJECTSExisting and potential mining projects in Greenland

Greenland Minerals and Energy

KvanefjeldRare Earth Elements (REE), uranium and zinc Expected employment:

Construction: Approx. 2,000 Operation: Approx. 800

Exploration expenditure: Approx. 75 M USDCapital cost: Approx. 832 M USDStatus: Pre-hearing has been approved. Process is ongoing.

Greenland Ruby

AappaluttoqRuby and pink sapphire Expected employment: Approx. 50Exploration expenditure: Not disclosed by Greenland Ruby at this timeCapital cost: Ibid.Total operating cost: Ibid. Status: Initial operation commenced May 2017

FBC Mining

Maarmorilik Zinc and lead mineOperated by Greenex (1973 – 90)Former employment: Approx. 350 Status: Further exploration at formerly operating mine site

Dundas Titanium

Dundas Ilmenite Exploration related employment: Approx. 40 Status: SIA and EIA expected to be completed early 2018. Construction of plant and infrastructure planned to commence in 2018

North American Nickel

Maniitsoq Nickel, copper, cobalt and PGE Exploration related employment: Approx. 40 Status: Highly active yearly exploration campaigns since 2011

Alba Mineral Resources

Inglefield LandCopper, gold, cobalt and nickelStatus: Exploration of a recently granted licence area

Thule Heavy mineral sands (ilmenite)Status: Exploration of two recently granted licence areas covering a coastline prospec-tive for heavy mineral sands, containing deposits of ilmenite

Melville BayIron oreStatus: Assessment of previously drilled project benefiting from a JORC resource


Ironbark Zinc

Citronen FjordZinc and lead Expected employment:

Construction: Approx. 300 Operation: Approx. 470Exploration expenditure: Approx. 50 M USD

Capital cost: Approx. 429.3 M USDTotal operating cost: Approx. 3.43 B USDStatus: Construction expected 2019

TANBREEZ Mining Greenland

Kringlerne Tantalum, Niobium, Rare Earth Elements (REE) and Zirconium Expected employment:

Construction: Approx. 140 Operation: Approx. 80-350

Exploration expenditure: Approx. 45 M USDStatus: Applied for exploitation licence March 2012.Negotiations are still ongoing

Hudson Resources

Naajat/White Mountain MineAnorthosite Expected employment:

Construction: Approx. 20 Operation: Approx. 60

Exploration expenditure: Approx. 30 M USDCapital cost: Approx. 34 M USDStatus: Construction commenced 2016 with production expected in the second half of 2018

Alopex GoldExploitation license previously held by Angle Mining

NalunaqGoldmineOperated by Crew Gold Corporation (2004-08) and by Arctic Mining (2010-13)Former employment: Approx. 60Status: 2017 Summer programme successfully delivered on the targets

General Nice Development Exploitation license previously held by London Mining Greenland (LMG)

ISUA Iron Expected employment:

Construction: Approx. 3.300 (Based on LMG data 2010 – 12)Operation: Approx. 850 (Ibid)

Capital cost: Approx. 2.35 B USD (Ibid)Operating cost: 46 USD/(t) at 15 Mtpa (Ibid) Status: Project on standby

Alba Mineral Resources AmitsoqFormer high-grade graphite mineStatus: Ongoing exploration at formerly operating mine site and new Kalaaq discovery


Aappaluttoq is Greenland’s first gem corundum mine. The minesite and state-of-the-art processing facilities are built and run by LNS Greenland A/S (LNSG) while Greenland Ruby A/S hold the license and administer marketing and sales. Together with the Greenlandic venture capital company Greenland Venture and The Bank of Greenland, LNSG and Greenland Bank secured the necessary financing in order to finalize the infrastructure at the mine and subsequently enable ruby and sapphire production.

Greenland Ruby gems are mined by adhering to strict ethical, social, human rights, and environmental laws and responsible practices. After mining, the company transports the gems to Greenland Ruby’s advanced sorting facility, where they are cleaned and sorted.

Gems can be tracked along every step of their jour-ney, from mine to sort house; to preferred partners’ workshops for treatment, cutting, and polishing; and then on to jewelry designers, manufacturers, brands, retailers and end consumers.

Greenland Ruby

Gemstones as a commodity are set apart, even from the precious metals entering the jewellery industry. The business model and marketability depend on stone qualities, characters, carats and cutting/ polishing, more than pure yield. Tracking and documentation of Greenlandic origin is planned in order to brand for market penetration and attest gems as ethically mined. Ruby and gemstone prices and sales are trending upwards, with India and China emerging as markets equivalent to U.S. market.

¶ Services required/business opportunities: ° Transport of goods and staff ° Services to the camp ° Provision of fuel ° Provision of goods and food ° Provision of technical services etc.

¶ Staff /jobs: ° Approx. 50 at the mine and in Nuuk ° The Aappaluttoq mine is expected to operate year round.

AappaluttoqRuby and pink sapphire Expected employment: Approx. 50Exploration expenditure: Not disclosed by Greenland Ruby at this timeCapital cost: Ibid.Total operating cost: Ibid. Status: Initial operation commenced May 2017


Company: LNS Greenland A/S (LNSG ) is a Greenlandic contracting company who operating the mine and processing facilities at the Aappaluttoq Mine. Greenland Ruby A/S (GR) is a newly founded gemstone mining company who carry the license. The sister companies LNSG and GR are group companies under the Danish registered Greenland Ruby DK ApS (GRDK). GRDK is owed by Rana Gruber AS in Norway with more than 90 % ownership and Greenland Venture A/S in Greenland

Website: www.greenlandruby.gl

Chairman of the Board in LNSG, GR & GRDK: Mr. Gunnar Moe

Managing Director GRDK: Mr. Magnus Kibsgaard

Managing Directors LNSG & GR Greenland: Mr. Peter Chr. Madsen / Mr. Finn K. Mortensen

LNSG & GR office: Nuuk, Greenland

Exploitation licence: ‘2014/21’ – 2044. Granted 10 March 2014 / Approval 23 Sep-tember 2014. Transferred from True North Gems Greenland to LNSG 3 October 2016

Site: 17 km2 – Aappaluttoq – SW Greenland – Municipality: Sermersooq

Deposit & mine: Corundum (ruby/pink sapphire) – Small open pit (approx. 150 m x 200 m)

Resource: Not disclosed by Greenland Ruby at this time

Current estimated operation: 2015 – 2035 (incl. construction – expansion possible)

Estimated exploration expenditure: Not disclosed by Greenland Ruby at this time

Estimated total capital cost: Ibid.

Estimated total operating cost: Ibid.

Total estimated sales revenue: Ibid.

Other properties: 2008/01 (80 km2); 2008/01 (38 km2); 2016/18 (N/A)

Status: Operation commenced May 2017. Shipment planned for the second half of 2018

http://www.greenlandruby.gl


Hudson Resources has maintained interests in Greenland since 2002, exploring for diamonds, rare earths and, more recently, industrial minerals in the form of anorthosite (calcium feldspar). The project is a simple mining operation similar to a rock quar-ry, with primary processing/grinding onsite to pro-duce feed product for use in making structural fiber-glass. Finer milling off site has the potential to create higher value products for the industrial minerals sector for paints and coatings. Hudson has signed a tenyear supply agreement with market leading fiber-glass producer Owens Corning. Hudson has financed construction through a combination of debt and equity.

Three main industrial applications for the Naajat anorthosite have been identified by Hudson: Feed-stock to the highend fiberglass (E-glass) industry; new source of alumina to supply aluminium smelters; and new source of filler material (component in the plas-tics and paints industries). The anorthosite at Naajat is rated very high for industrial use, containing a high content of aluminium (33 per cent max) and calci-

Hudson Greenland

um (16 per cent max). The deposit will support mine life in excess of 100 years and the business model rests upon three potential revenue streams from one operation. Demand is upward trending with Asia (China), the US and the EU representing primary mar-kets. Global production (2012) estimated at 10.8 B USD.

¶ Services required/business opportunities: ° Transport of goods and staff ° Services and construction to the camp and facilities

° Provision of fuel ° Provision of goods and food ° Provision of technical services etc.

¶ Staff /jobs: ° Approx. 20 for construction and 60 once operational.

° Mining season expected to be nine months/year, processing plant ten months/year.

Naajat/White Mountain MineAnorthosite Expected employment:

Construction: Approx. 20 Operation: Approx. 60

Exploration expenditure: Approx. 30 M USDCapital cost: Approx. 34 M USDStatus: Construction commenced 2016 with production expected in the second half of 2018


Company: Hudson Greenland A/S is the operating subsidiary of Hudson Resources Inc., a junior exploration and mining company focused on anorthosite (calcium feld-spar) and Rare Earth Elements (REE). Shares trade on the TSX Venture Exchange [HUD]

Website: www.hudsonresources.ca

Board Chairman: John Hick

President, Director: James Tuer

Hudson Resources office: Vancouver, BC, Canada

Exploitation licence: ‘2015/39’ – 2045. Granted 11 September 2015 / Approval 24 September 2015

Site: 92 km2 – Naajat (White Mountain) – W Greenland – Municipality: Qeqqata De-posit & mine: Anorthosite (calcium feldspar) – Small open pit (approx. 300 m x 400 m)

Resource: 60 M (t) Current estimated operation: 2015 – 2035 (incl. construction – expansion possible)

Estimated exploration expenditure: 30 M USD. Estimated total capital cost: 34 M USD Estimated total operating cost: Confidential. Total estimated sales revenue: Confidential Estimated exploration expenditure: 30 million USD Estimated total capital cost: 25 million USD Estimated total operating cost: Confidential Total estimated sales revenue: Confidential

Other properties: 2010/40 (92km2) (Sarfartoq/REE); 2013/01 (146km2); 2012/38 (N/A)

Status: Construction commenced (September 2016). Operation and shipment planned for the second half of 2018

http://www.hudsonresources.ca


Ironbark Zinc

The remotely situated Citronen area presents one of the world’s largest undeveloped zinclead deposits. Ironbark is proposing to develop three mining deposits within the area, with an onsite facility for crushing, grinding and flotation processing to pro-duce mineral concentrates of zinc and lead. Concen-trates will be shipped offsite to Iceland or another northern European port and subsequently to a third-party smelter for refining. Glencore and Nyrstar are project shareholders and have committed to 70 per cent offtake agreements. MOU has been signed with China Nonferrous regarding lump sum construction and commissioning, with 70 per cent associated debt funding and 20 per cent direct project investment.

Zinc stock levels are declining with major producers closing mines. Demand is forecasted to rise towards 2025, and price is projected an upward trend scenario, with both global markets and demand from China. Lead and zinc concentrates are traded on the global market permitting annual negotiations bench-marking pricing amongst smelter, miners and metal markets. Zinc is the fourth most used metal globally.



¶ Staff /jobs: ° Approx. 300 for construction and up to 470 once operational.

¶ Mining season: ° All year round ° Shipping window to area approx. mid-July to mid-September.

Citronen FjordZinc and lead Expected employment:

Construction: Approx. 300 Operation: Approx. 470Exploration expenditure: Approx. 50 M USD

Capital cost: Approx. 429.3 M USDTotal operating cost: Approx. 3.43 B USDStatus: Construction expected 2019


Company: Ironbark Zinc Ltd. is a junior resource company focused on development of major base metal mining projects (lead and zinc) in Greenland and Australia. Shares trade on the ASX Exchange [IBG]

Website: www.ironbark.gl

Board Chairman: Peter Bennetto

Managing Director: Jonathan C. Downes

Ironbark Zinc office: Subiaco (Perth), WA, Australia

Exploration licence: ‘2007/02’ – 2016 via Bedford (No 3) Ltd. (Owned 100 per cent by Ironbark)

Site: 120 km2 – Tarsarneq (Citronen) – N Greenland – Municipality: N/A

Deposit & mine: Zinc; lead – Underground & Open pit

Resource: 70.8 M (t) at 5.7 per cent Zn+Pb

Current estimated operation: 2017 – 2033 (incl. construction – expansion possible)

Estimated exploration expenditure: 50 M USD

Estimated total capital cost: 504 M USD

Estimated total operating cost: 3.42 B USD

Total estimated sales revenue: 5.56 B USD

Other properties: 2007/31 (130 km2); 2007/32 (122 km2); 2007/33 (69 km2); 2010/47 (94 km2); 2011/28 (5 km2); ‘2011/33 (155 km2)’; 2016/22 (114 km2)

Status: Exploitation Licence Approved. Construction and Mining expected to commence 2019

http://www.ironbark.gl


at overcoming perceived monopolies in commodities like tantalum, rare earths, yttrium and even niobium, the demand for REE is expected to surpass current supply. Prices have settled since the 2010/11 bubble and are trending up.

¶ Services required/ business opportunities ° Transport of goods and staff ° Technical services ° Construction and operating camp and facilities

° Provision of fuel/food and other goods ° Recruitment ° Educational services

¶ Staff/jobs for stage 1: ° Approx. 140 in construction and 80 when operational, rising to 250 in stage 3 in a 3 M t/year option

° A further 50 – 100 may be needed for downstream processing of other products and administration of offshore processing facilities, marketing etc.

The project represents a significant multielement deposit including perhaps the largest REE and tan-talum deposit in the world. Tanbreez is proposing to separate the ore into three saleable components pri-or to shipping. These are eudialyte (the source of the Ta, Nb, REE and Zr), arfvedsonite and feldspar. The company is hoping to be able to sell 97 per cent of everything mined, potentially making this mine unique. Due to high costs in Greenland, further downstream processing of the eudialyte will not be possible. At present, the company is awaiting a pending agreement on the exploitation license before it can finalise offtakes, financing arrangements and service contracts.

Tantalum is very stable and used in alloys due to its resistance to corrosion, as well as in capacitors in electronic equipment. Niobium shares many properties and application purposes with Tantalum. Zirconium is a light metal resistant to corrosion and is also used in alloys, advanced ceramics and in the space industry. Tanbreez has spent considerable funds on research into downstream processing aimed

TANBREEZ Mining Greenland

Kringlerne Tantalum, Niobium, Rare Earth Ele-ments (REE) and Zirconium Expected employment:

Construction: Approx. 140 Operation: Approx. 80-350

Exploration expenditure: Approx. 45 M USDStatus: Applied for exploitation licence March 2012.Negotiations are still ongoing


Company: Tanbreez Mining Greenland A/S is a junior resource company wholly owned by Rimbal Pty Ltd, which is an Australian company owned by the Barnes Family Trust. The company is focused on a multi element deposit of Tantalum, Niobium, Rare Earth Elements (REE) and Zirconium in Greenland. Shares are not publicly traded

Website: www.tanbreez.com

Owner, Chief Geologist: Greg Barnes

Tanbreez Mining Greenland office: S Perth, WA, Australia & Nuuk, Greenland

Exploration licence: 2006/04 Site: 18 km2 – Killavaat Alannguat (Kringlerne) – S Greenland – Municipality: Kujalleq

Deposit & mine: Tantalum, Niobium, REE & Zirconium – Open pit

Resource: 4.8 B (t)

Current estimated operation: Ten years (expansion possible)

Estimated exploration expenditure: 45 M USD

Estimated total capital cost: Not disclosed

Estimated total operating cost: Not disclosed

Total estimated sales revenue: Not disclosed

Other properties: 2010/24 (44 km2); 2007/45 (50 km2) (Ivittuut) – both via Rimbal Pty Ltd.

Status: Applied for exploitation licence March 2012. SIA and EIA hearings completed late 2013. Negotiations on the application for a 0.5 M t/year operation are currently ongoing (Oct. 2016). Long term plans of extension to 1.5 M t/year and 3.0 M t/year have as yet not been applied for

http://www.tanbreez.com


The matter is subject to further political discussions following any application for uranium exploitation, such as GME’s. Looking ahead, the uranium market is expected to grow significantly. China has a heavy dominance on the current production and stock piling of REE, why the US, the EU and others may look for alternative suppliers for a strategic pipeline stream. REE are finding increased uses within greentechs and consumer products. The demand for REE is expected to surpass current supply. Prices have settled since the 2010/11 bubble and are trending up.



¶ Staff /jobs: ° Up to 2,000 jobs during construction and up to 800 once operational

The project represents a significant multi element deposit including perhaps the second largest REE deposit in the world, as well as significant uranium and zinc deposits. Build-Own-Operate discussions for third party infrastructure financing are current-ly ongoing with the government of Greenland and a major European multinational conglomerate special-ises in power provision. As of 23 September 2016, Chinese Shenghe Resources Holding Ltd., has agreed, through 99.99 per cent owned subsidiary Le Shan Shenghe Rare Earth Co Ltd., to subscribe for 125 M. ordinary shares in GME to take a 12.5 per cent hold-ing, pending approval prior to 30 November 2016.

The issue of uranium mining, Greenland’s previous zerotolerance policy and the geopolitical aspects of the resource involving the Danish government have been and are significant aspects when addressing this resource. Legislative agreements between Greenland and Denmark have been passed allowing Greenland to export uranium under international safeguard protocols. Greenland has signed a parliament bill on the safeguard of nuclear materials and export of uranium.

Greenland Minerals and Energy

KvanefjeldRare Earth Elements (REE), uranium and zinc Expected employment:

Construction: Approx. 2,000 Operation: Approx. 800

Exploration expenditure: Approx. 75 M USDCapital cost: Approx. 832 M USDStatus: Pre-hearing has been approved. Process is ongoing.


Company: Greenland Minerals and Energy Ltd. (GGG) is a junior resource company, focused on Rare Earth Elements (REE), uranium and zinc in Greenland. Shares trade on the ASX Exchange [GGG]. Greenland Minerals and Energy A/S (GME) is the Greenlan-dic subsidiary of GGG

Website: www.ggg.gl and www.gme.gl

Director, Board Chairman: Anthony Ho

Managing Director: John Mair

Greenland Minerals and Energy Ltd. office: Subiaco (Perth), WA, Australia

Greenland Minerals and Energy A/S office: Narsaq, Greenland

Exploration licence: 2010/02

Site: 80 km2 – Ilímaussaq (Kvanefjeld) – S Greenland – Municipality: Kujalleq

Deposit & mine: REE, uranium, zinc – Open pit

Resource: 1 B (t)

Current estimated operation: 2017 – 2056 (incl. construction etc. – expansion possible)

Estimated exploration expenditure: 75 M USD (2012)

Estimated total capital cost: 832 M USD

Estimated total operating cost: Not disclosed

Total estimated sales revenue: Not disclosed

Other properties: N/A

Status: Pre-hearing has been approved. Process is ongoing

http://www.ggg.gl

http://www.gme.gl




¶ Staff /jobs: ° Up to 3,300 jobs during construction and up to 850 once operational

The project representing a major, largescale, iron ore endeavour is currently on standby. Mining, process-ing to slurry and pipeline to port facility was planned in 2012, when London Mining Greenland applied for exploitation rights. Since the dismantlement of its mother company (London Mining) and overtake from General Nice Development, the feasibility prospect has not supported commercial value of production under current iron ore market prices.

With current iron pricing, the project should be viewed as a longterm strategic investment from the General Nice Group. Iron ore has been in a case of oversupply and cost production lowering, but a rise in demand may also be in the horizon. Representing a serious investment, General Nice Group and investors will be on the lookout for solid upwards movements to solidify in iron ore prices before initiating opera-tion expenditure at Isukasia. China still represents a major market for iron import and will likely look to secure sourcing for needed commodities including those for steel making.

General Nice Development

ISUA Iron Expected employment:

Construction: Approx. 3.300 (Based on LMG data 2010 – 12)Operation: Approx. 850 (Ibid)

Capital cost: Approx. 2.35 B USD (Ibid)Operating cost: 46 USD/(t) at 15 Mtpa (Ibid) Status: Project on standby


Company: General Nice Development Ltd. is part of the General Nice Group which en-gages in three main businesses: mineral resource investment, minerals trading and real estate investment. Shares of group subsidiaries trade on related exchange venue

Website: www.generalnice.com

Founder, Chairman: Cai Sui Xin. CEO, Executive Director: Yu Lau

General Nice Development Ltd. office: Sheung Wan, Hong Kong, China

Exploitation licence: 2013/31 – 2042 Granted 24 October 2013 (London Mining Greenland)

Site: 290 km2 – Isukasia – W Greenland – Municipality: Sermersooq Deposit & mine: Iron – Open pit Resource: 1,1 B (t) Current estimated operation: 15 – 20 years (incl. construction – expansion possible)

Estimated total capital cost: 2.35 B USD Estimated total operating cost: 46 USD/(t) at 15 Mtpa (resource and fiscal information: based on LMG data 2010 – 12)

Status: Project on standby. Exploitation licenses granted to previous licensee; London Mining Greenland A/S, now owned by General Nice Development. Indirect transfer of license approved by the Government of Greenland, late 2014. IBA and final approval to be concluded

Estimated total capital cost: 2.35 billion USD Estimated total operating cost: 46 USD/(t) at 15 Mtpa (resource and fiscal information: based on LMG data 2010 – 12)

Other properties: N/A

Status: Project on standby. Exploitation licenses granted to previous licensee; London Mining Greenland A/S, now owned by General Nice Development. Indirect transfer of license approved by the Government of Greenland, late 2014. IBA and final approval to be concluded

http://www.generalnice.com


Chairman: John Sabine

CEO, Director: Keith Morrison

North American Nickel office: North Vancouver, BC, Canada

Exploration licence: 2011/54 (2,689 km2), 2012/28 (296 km2) and 2015/30 (N/A)

Site: Maniitsoq (2011/54 + 2012/28) – West Greenland – Municipality: Qeqqata

Deposit: Nickel, copper and cobalt

Estimate exploration expenditure to date: 57 M CAD

Status: NAN has completed its seventh con-secutive year of exploration on the property and is focused on providing size potentials and building tonnage at several zoned deposits

North American Nickel have been highly active in Greenlandic since 2011, completing extensive exploration including airborne, ground and borehole geophysical surveys as well as a large satelliteborne remote sensing survey and almost 30,000 meters of diamond drilling. Successful equity financing through committed investment partners has provided a wellfunded platform to support robust exploration programs in Greenland. Nickel is closely tied to steel demand with prices fluctuating relative to global industrial trends. Global demand has a strong corre-lation with China’s manufacturing industry.

Company: North American Nickel Inc. [NAN] is a junior resource exploration and development com-pany, focused on nickel, copper, cobalt and PGE in Greenland, Canada and the United States. Shares trade on the TSX Venture Exchange [NAN]. The Sen-tient Group owns approximately 64 per cent of NAN Website: www.northamericannickel.com

North American Nickel

Maniitsoq Nickel, copper, cobalt and PGE Exploration related employment: Approx. 40 Status: Highly active yearly exploration campaigns since 2011

http://www.northamericannickel.com


Alopex Gold is a Greenland focused gold mining com-pany working towards restarting production at the 100% owned Nalunaq Gold Mine in the Nanortalik Gold belt in Southern Greenland. Nalunaq historically produced more than 350,000 ounces at an average grade of 15g/t with costs of USD530/oz between 2004 and 2009. It hosts highgrade NI 43 – 101 com-pliant resources (263koz Au @ 18.7 g/t) with exciting nearmine and regional exploration targets with an exploration potential of 1.2M oz. There is an exploita-tion licence and significant investment by the previous owners to establish the existing infrastructure includ-ing an underground processing plant, a nine km long road and a port facility which means the corporation is in a position to fasttrack its development activity. It also owns the Vagar Exploration Licence compris-ing three subareas targeting mineralisation along the Nanortalik Gold Belt, an Exploration Licence at the early exploration stage at Tartoq property and a Pros-pecting Licence covering West Greenland.

Company: Alopex Gold Inc. is a new public Green-landfocused gold company engaged in the identifi-cation, acquisition, exploration and development of gold properties in country. The corporation’s shares are listed on the TSX Venture Exchange under the AEX ticker TSX:V:AEX

Website: www.alopexgold.com

President and CEO: Eldur Olafsson

Office: Toronto, Canada and Reykjavik, Iceland

Exploitation licence: 2003/05 (22 km2) Nalunaq

Exploration licence: 2006/10 (435 km2) (Vagar) and 2015/17 (78 km2) (Tartoq)

Prospecting licence: 2017/45 covering West Green-land, in this context defined as areas south of 78ºN and west of 44ºW

Site: Nalunaq gold mine (2003/05) – South Green-land – Municipality: Kujalleq

Deposit: Gold

Status: 2017 Summer programme successfully de-livered on the targets set out in the June 2017 IPO prospectus allowing Alopex Gold to move forward and plan a more intensive drill programme through Summer 2018 to expand the current resource, deliver a PEA and further derisk the path towards restarting production in 2019

Alopex Gold

NalunaqGoldmineOperated by Crew Gold Corporation (2004-08) and by Arctic Mining (2010-13)Former employment: Approx. 60Status: 2017 Summer programme successfully delivered on the targets


FBC Mining

FBC Mining has completed further exploration at the formerly active Maarmorilik mine site. A wellknown area of substantial and exceptionally highgrade zinc-lead mineralisation with an existing exploitation licence and surrounding exploration licence. There is a long successful mining history at the Black Angel mine in the Maarmorilik Zinc District – a total of 11.2 Mt grading 12.4% zinc and 4.2% lead mined over 17 years. There is a substantial exploration potential to locate new resources of a similar order of magnitude as previously mined and more than 200 mineralised showings are recorded in the area, some with simi-lar style and grade to the Black Angel mineralisation. Some grab samples grade more than 40% zinc.

With zinc mine closures globally, the zinc price is trending upwards. Current infrastructure allows fast track to production and includes harbour, camp buildings, hangars and a six km long underground tunnel in the Nunngarut Plateau.

Company: FBC Mining Ltd. is a junior resource com-pany focusing on exploitation of gold, zinc and lead in Greenland, at a previously operating mine site. Shares are not publicly traded

Website: www.fbcmining.com

Managing Director: Eldur Olafsson

Office: Bourne, Eng, United Kingdom

Exploitation licence: 2008/29 (52 km2)

Exploration licence: 2010/45 (102 km2)

Site: Maarmorilik zinc district (2008/29 & 2010/45) – Northwest Greenland – Municipality: Avannaata

Deposits: Zinc and lead

Estimate exploration expenditure to date: 57 M CAD

Status: Further exploration is ongoing at formerly operating mine site

Maarmorilik Zinc and lead mineOperated by Greenex (1973 – 90)Former employment: Approx. 350 Status: Further exploration at formerly operating mine site

http://www.fbcmining.com


Dundas Ilmenite Exploration related employment: Approx. 40 Status: SIA and EIA expected to be completed early 2018. Construction of plant and infrastructure planned to commence in 2018

Dundas Titanium

Dundas Titanium is the operating company for Bluejay Mining which has been present and active in Green-land for more than 10 years. With a fastpaced devel-opment programme underway, Bluejay is focused on advancing Dundas into production in 2018. Having proven the grade quality of Dundas, Ilmenite Project, work is now underway to prove its size potential. The project promises high grade ilmenite characteristics planned to be dug and processed from raised and ac-tive beaches as well as dredged from drowned beach-es. Primo February 2018 the company announced a capital raise of 24 M USD via ordinary shares. Ilmenite is the primary ore of titanium and there is a expected continued need from world markets.

Company: Bluejay Mining Plc. is a junior resource exploration and development company primarily focused on ilmenite, but also with interest in nickel, copper, platinum, lead, zinc and silver in Greenland and Finland. Shares trade on the London AIM Market [JAY] and dually on the Frankfurt Stock Exchange [S5WA]

Website: www.titanium.gl

Chairman: Mike Hutchinson

CEO, Director: Rod Mclllree

Bluejay Mining office: London, Eng, United Kingdom

Exploration licence: 2015/08

Site: 68 km2 – Dundas (Moriusaq & Itelak) – N Greenland – Municipality: Avannaata

Deposit & mine: Ilmenite, on and offshore beach sediment excavation

Resource: 23.6 M (t) at 8.8% ilmenite (in situ), including a highgrade zone equal to 7.9 M (t) at 14.2% ilmenite

Current estimated operation: Not disclosed

Estimated exploration expenditure: Not disclosed Estimated total capital cost: Not disclosed Estimated total operating cost: Not disclosed Total estimated sales revenue: Not disclosed

Other properties: 2017/01 (28 km2); 2011/31 (107 km2) (Kangerluarsuk) & 2012/29 (194 km2) (Disko) both through Disko Exploration Ltd.

Status: SIA and EIA expected to be completed early 2018. Construction of plant and infrastruc-ture planned to commence in 2018

http://www.titanium.gl


Alba Mineral Resources

AmitsoqFormer high-grade graphite mineStatus: Ongoing exploration at formerly operating mine site and new Kalaaq discovery

Alba Mineral Resources has been active in Greenland since 2015. Extensive work has been undertaken at the highgrade Amitsoq graphite project where, along-side the former producing Amitsoq mine, Alba has discovered a new graphite zone, Kalaaq. Graphite is the anode material in lithiumion batteries and there-fore a key commodity in the electric vehicle sector.

Since 2017, Alba has added three projects to its Greenlandic portfolio: Inglefield Land (multicom-modity); Melville Bay (iron ore); and Thule Black Sands, where highgrade ilmenite has been identified across several kilometres of coastline in North-West Greenland. Ilmenite is the primary source of titanium dioxide, used as a pigment in plastics, paints, coatings and paper.

Company: Alba Mineral Resources Plc. is a natural resources company with a diversified asset and investment portfolio. In addition to its exploration assets in Greenland, Alba holds interests in the United Kingdom onshore oil and gas sector and recently acquired 49 per cent of the Clogau Gold Project in Wales. Alba shares trade on the AIM market of the London Stock Exchange [LON: ALBA]

Website: www.albamineralresources.com

Executive Chairman: George Frangeskides

Office: London, Eng, United Kingdom

Site and exploration licenses: Amitsoq Graphite 2013/16 (146 km2) – Southern Greenland – Munic-ipality: Kujalleq held by Obsidian Mining Ltd. Thule Black Sands 2017/29 (186 km2) & 2017/39 (104 km2) – North-West Greenland – Municipality: Avan-naata. Inglefield Land 2017/40 (82 km2) – North-West Greenland – Municipality: Avannaata held by White Eagle Resources Ltd. Melville Bay (2017/41) (354 km2)– North-West Greenland – Municipality: Avannaata held by White Fox Resources Ltd in a 51%:49% joint venture

Deposits: Ilmenite, graphite, iron ore, copper, gold, cobalt and nickel

Status: Alba and its group of companies are focused on moving their high quality portfolio of exploration projects in Greenland into the development phase

Thule Heavy mineral sands (ilmenite)Status: Exploration of two recently granted licence areas covering a coast-line prospective for heavy mineral sands, containing deposits of ilmenite

Inglefield LandCopper, gold, cobalt and nickelStatus: Exploration of a recently granted licence area

Melville BayIron oreStatus: Assessment of previously drilled project benefiting from a JORC resource

http://www.albamineralresources.com


In relation to the mineral industry, the view that Greenland is isolated and logistically difficult in terms of operating can be challenged by the fact that there are several natural advantages to the country’s layout and position; Greenland is centrally placed between the European and North American markets. Condi-tions and climate are generally not unlike Arctic and Subarctic areas where successful mining is already ongoing. Shipping and port facility potential are also apt for many of Greenland’s deep fjords, delivering logistical benefits in terms of transportation. With shipping possibilities via the Northwest Passage – initially navigated by a commercial vessel in 2008 – the access to Asia’s markets is also set to become much more cost efficient.

Infrastructure development in Greenland is still a key issue. Focus is set towards harbour facilities, airports and runway expansions, urban development, energy needs and building methodology as well as building materials. Certain projects have been completed in recent years – e.g. Sisimiut’s modernised harbour fa-cilities of 2013 and Sikuki – Nuuk Harbour of 2017. Housing/building renovation and construction is on-going through both private and public contractors, with a strengthened focus on low maintenance and inorganic materials.

Urbanisation and a demographic shift towards larger towns play into the plans for development. There is a net emigration from Greenland, but a net internal mi-gration from smaller settlements to larger towns. In terms of transportation needs and tying the country together, harbours and airports naturally play a vital role. Harbour modernisation is central in Greenland, since advancements here supports dominant sectors such as fishing and cargo shipping. Furthermore, harbour berth improvements are an important aspect as it relates to ferries and especially cruise ships in Greenlandic waters.

Of the infrastructural advancements planned or projected in Greenland, few – if any – are getting as much attention as the proposed airports and runway exten sions, based on the Inatsisartut decision of 2 December 2015. Not only do the structures them-selves present a sizeable engineering and construc-tion assignment, but great expectations are tied to the spillover effects of improved airbased transportation connecting towns directly to inter-national markets. The benefits are tangible for a range of trade and commercial sectors.

INFRASTRUCTURAL DEVELOPMENT PROJECTS


Investment scenarios via private partners or/and funds (e.g. the EU, pension or venture) are being looked into by the Government of Greenland as well as the municipalities. Investor cases may come to include not only airports and harbours, but also new housing areas, renovation of current buildings, and dorm rooms/colleges.

Due diligence efforts and a thorough breakdown of potential investments schemes behind the respective projects are to correlate with presentations of relevant investment opportunities and business cases. Hence, contract tenders, actual construction and potential tenders for operation following these infrastructural projects could still be some time away. As such, 2018 or parts of it, may be a time of planning, negotiations, preparation and hopefully signed agreements.

Small and medium sized Greenlandic based engineering and construction companies will look towards tenders including manageable subcon-tracts and/or partnerships with larger international partners. Inbound international contractors can do well in establishing partnerships will local companies to get onsite know-how. Some public contract stipulations may also necessitate a certain amount of local content in workforce and/or business partnerships.

Public funding by the Greenlandic treasury alone is not an option if the wanted infrastructural development projects are to be initiated and com-pleted. Looking ahead, from 2018 to 2020, the government of Greenland will be pressed to leverage all projects in terms of public spending. Hence, the call for investments and viable financial models for ven-tures with investment partners, is currently subject to much consideration. Public-Private-Partnerships (PPP), Public-Private-Cooperation (PPC) and similar models have been presented by advisory parties at seminars in both Copenhagen and Nuuk. Such investment models and partnerships are well established in e.g. the United Kingdom and Den-mark, and may – tweaked to suit local conditions and legislative framework – provide the necessary economic leverage to materialise some of the plans for new infrastructure.

Private investors will look towards equity, revenue streams and certainty surrounding legislative frame-work and agreed documents. Initially, the crux of the matter will be the ability to present attractive and well managed business cases to capital investors and operating companies, whilst at the same time ensuring the public contractor is guaranteed a ful-filment of functional requirements. Risk management and wellbalanced contractual agreements satisfying all the involved shareholders will be at the centre of any successful and lasting venture towards the development of Greenlandic infrastructure through private investments.

Collaboration and Investments


Kangerlussuaq – runway upkeep, new port and road to SisimiutRunway: 150 million DKKATV road: 22 million DKKHarbour: 50 million DKK

Nuuk AirportCollective estimated construction cost: 3.6 B DKK [Nuuk, Ilulissat and Qaqortoq]Currently anticipated runway: 2200 m/ International airport

Nuuk HarbourConstruction cost: Approx. 60 M USDA total area of 47,320m2 with a terminal capacity of 3,290 TEU

Nuuk City DevelopmentCollective estimated construction cost: 5 B DKK

Ilulissat Airport Collective estimated construction cost: 3.6 B DKK [Nuuk, Ilulissat and Qaqortoq]Currently anticipated runway: 2200 m/ International airport

Selected infrastructure projects in key figures

Ittoqqortoormiit AirportCollective estimated construction cost: 800 – 1.400 M DKK [Tasiilaq and Ittoqqor-toormiit]Currently anticipated runway: 650 m/ Regional airport

Tasiilaq AirportCollective estimated construction cost: 800 – 1.400 M DKK [Tasiilaq and Ittoqqor-toormiit]Currently anticipated runway: 1500 m/ North Atlantic airport

Qaqortoq AirportCollective estimated construction cost: 3.6 B DKK [Nuuk, Ilulissat and Qaqortoq]Currently anticipated runway: 1500 m/ North Atlantic airport

Source: Estimates for airports financial needs based on information in proposal to Greenland’s 2018 Finance Act. Further restrictions apply to baseline estimates.


Sikuki – Nuuk Harbour

The company Sikuki Nuuk Harbour A/S was founded 23 December 2013.

The purpose is to construct, own, operate and develop harbour areas in Nuuk and to perform related business activities. Prequalification proceedings were completed in 2014, with tender proceedings ending 31 October 2014 for a turnkey contract. Construction commenced 1Q 2015. New buildings and construc-tion include 310 m quay at 13 m of depth and 50 m at 8 m of depth. A total area of 47,320 m2 with a termi-nal capacity of 3,290 TEU and ability to receive and operate container vessels of up to approx. 2,500 TEU. Adding to this is refrigerated/freezer storage; a 1,250 m2 warehouse and a 1,200 m2 workshop building. As a new model for Greenlandic harbours, commercial use and access to some facilities from foreign vessels will entail ship dues and payments on services delivered.

The capital base is based on government funding, through equity and loans as well as external financ-ing, the latter (and primary) part via Pareto Securities investment 1Q 2015.

Board Chairman: Lars Erik Karlsson

CEO: John Rasmussen

Website: www.sikuki.com

Total cost of construction: Approx. 59,2 M USD

Main construction contractor: Per Aarsleff Greenland ApS

Status: Inaugurated 22 September 2017

Nuuk HarbourConstruction cost: Approx. 60 M USDA total area of 47,320m2 with a terminal capacity of 3,290 TEU

http://www.sikuki.com


Kalaallit Airports

As of 1 July 2016, the government of Greenland es-tablished the company Kalaallit Airports A/S. The mandate of Kalaallit Airports is to undertake the needed technical and market related studies. And following, to be part to negotiations and agreements concerning investments and financing regarding the potential airports and runways of Nuuk, Qaqortoq and Ilulissat. The airport company Mittarfeqarfiit currently still runs and operate Greenland’s airports and will continue to handle the countries other airports.

EIA hearings were initiated for Ilulissat and Nuuk air-port projects primo 2018. Public spending is estimat-ed at around 1 – 1.6 B DKK, thus leaving room for for-eign investments – e.g. through PPP-models. Public financing needs for Nuuk and Ilulissat are estimated at 25 – 33%, whereas Qaqortoq is expected to need a substantial higher degree of public financing.

Board Chairman: Johannus Egholm Hansen

CEO: Steffen Ulrich-Lynge

Website: www.kair.gl

Collective estimated construction cost: 3.6 B DKK [Nuuk, Ilulissat and Qaqortoq]

Status: EIA hearings commenced. Construction of all three runways estimated completed by late 2022

Mittarfeqarfiit

Mittarfeqarfiit, Greenland Airports, provides services to a number of aircraft operators, the Greenlandic society and private companies. All in all, that means managing the complete air transportation of passen-gers and cargo in Greenland, divided between 13 air-ports and 46 helipads (and two hotels). Currently this still includes Nuuk, Ilulissat and Qaqortoq airport. Besides the planned upkeep at the current inter-national airport of Kangerlussuaq, the Government of Greenland plans for no less than seven additional airports for to replace current helipads in Tasiilaq, Ittoqqortoormiit, Qeqertarsuaq, Qasigiannguit, Kan-gaatsiaq, Narsaq and Nanortalik. Tasiilaq is planned as an international airport whereas Ittoqqortoormi-it, like the other five, is planned as a regional 650 m gravel landing strip. These later two have both been bestowed conclusive locations aa well as an early price estimated – notably higher than previous estimates.

Administered by: The Ministry of Municipalities, Settlements, Outlying Districts, Infrastructure and Housing

CEO: Marie Fleischer

Website: www.mit.gl

Collective estimated construction cost: 800 – 1.400 M DKK [Tasiilaq and Ittoqqortoormiit]

Status: EIA hearings expected in 2018. Constructions estimated completed by 2021

http://www.kair.gl

http://www.mit.gl


Nuuk Airport (Kalaallit Airports)

The capital of Greenland may receive a modernised airport and an extension of the current 950 m run-way, which only accommodates smaller propel based fixedwinged aircrafts and helicopter traffic. Interna-tional traffic to Nuuk is currently primarily serviced via a hub in either Kangerlussuaq (2810 m runway) or in Iceland. Although concerns are raised about regularity and discussions are ongoing about an extension of current runway vs. construction at an alternate location, an international traffic connection to Nuuk is well anticipated by travellers and businesses alike. Cruise ship operators have remarked on the potential of Nuuk as transit hub, if airports planes are carried out to service international flights. Other serious investments may follow suit – both in the tourism sector and in other industries. As the ad-ministrative centre of Greenland and home to the majority of the larger companies’ headquarters, Nuuk already sees a great deal of international business travellers. A direct international connection would be a boon to these as well as Nuuk, an emerging tourist destination. The fjords and backcountry of Nuuk offer potential for tourist related growth and currently the summer seasons have ample modern hotel capacity.

Currently anticipated runway: 2200 m/ Inter national airport

Status: Construction expected to commence late summer 2018

Nuuk AirportCollective estimated construction cost: 3.6 B DKK [Nuuk, Ilulissat and Qaqortoq]Currently anticipated runway: 2200 m/ International airport Status: Construction expected to commence late summer 2018


Ilulissat Airport (Kalaallit Airports)

The premier tourist destination of Ilulissat was the first to see geotechnical surveying in relation to the extension of the current 845 m runway. Internation-al traffic to Ilulissat is currently primarily serviced via hubs in either Kangerlussuaq or Iceland. Home to the UNESCO World Heritage site listed Icefjord, Ilulissat’s magical sceneries have put the city on the forefront when it comes to the allure of Greenland as a tourist destination. Home to massive icebergs and awarded hotels from where you can enjoy the scenery, the town has seen a rise in incoming tourists to the point where overnight capacity has very little vacancy in high seasons. With direct international flights, the town could further advance its already thriving tour-ism industry as well as provide further opportunities for the welldeveloped fishing industry. Investments into added capacity are already ongoing from local operators – from expansion on situated hotels to new developments of luxury overnight facilities next to the fjord. A partnership between the municipality of Qaasuitsup (now Avannaata municipality), the Greenlandic Government and Realdania is behind the aspiring project of Ilulissat’s coming Icefjord Centre – planned to open in 2020.

Currently anticipated runway: 2200 m/ International airport

Status: Construction expected to commence spring 2019

Ilulissat Airport Collective estimated construction cost: 3.6 B DKK [Nuuk, Ilulissat and Qaqortoq]Currently anticipated runway: 2200 m/ International airportStatus: Construction expected to commence spring 2019


Six km of road has already been laid down by the municipality of Kujalleq in South Greenland, connecting the town of Qaqortoq to the placement of a future potential airport. Since the final decision on any of the airports has not yet been made, this road certainly speaks to the proactiveness and expec-tations of the southern region. International traffic to Qaqortoq is currently primarily serviced via hub in Narsarsuaq (1,830 m), connecting via ferries and helicopter. Qaqortoq and the rest of southern Green-land is rich on art, culture and Norse history, and boast several adventure opportunities for visitors wishing to enjoy the lush mountains region. Old ru-ins and hot springs are among the region attrac-tions, as well the region being home to both fishing industries, agriculture and farmers – thus fittingly called the country’s food storage. Local hotels have been modernising and plans are on the ready for a boom in business.

Qaqortoq Airport (Kalaallit Airports)

Currently anticipated runway: 1500 m/ North Atlantic airport

Status: Construction expected to commence spring 2019

Qaqortoq AirportCollective estimated construction cost: 3.6 B DKK [Nuuk, Ilulissat and Qaqortoq]Currently anticipated runway: 1500 m / North Atlantic airport Status: Construction expected to commence spring 2019


Currently anticipated runway: 1,500 m (minimum)/North Atlantic airport

Status: Location has been settled. Studies are still ongoing – EIA anticipated during 2018, with con-struction completion in 2021

An airport in Tasiilaq is also one of the politically prioritised airport projects, however this location is not currently included in the scope of Kalaallit Air-ports A/S. Today, Tasiilaq is serviced internationally primarily via flights from either Kangerlussuaq or Ice-land, connecting to the settlement of Kulusuk (1,199 m/gravel). From Kulusuk, one reaches Tasiilaq either by boat, helicopter or dogsled/snowmobile. Tasiilaq is the largest city on the east coast and presents vis-itors with a dramatic roughed landscape and a less developed feel as compared to the larger towns of the west coast. Well established outfitters and remote cabins combine to make the dramatic landscape accessible for adventures. With close proximity to Iceland, Icelandic tourists have the option of add-ing an East Greenland trip to their itinerary and collaboration between Icelandic and local tour operators is set for further advancement. The current traffic structure creates a bottleneck for in/outbound travellers to/from Tasiilaq and an airport would open up a range of possibilities in terms of volume and investment. Tasiilaq-based operators are currently reporting upward trending revenues.

Tasiilaq Airport (Mittarfeqarfiit)

Tasiilaq AirportCollective estimated construction cost: 800 – 1.400 M DKK [Tasiilaq and Ittoqqor-toormiit]Currently anticipated runway: 1500 m/ North Atlantic airport Status: Initial studies are ongoing


Currently anticipated runway: 650 m (with option to extend to 1,199 m)/Regional airport

Status: Location has been settled. Studies are still ongoing – EIA anticipated during 2018, with con-struction completion in 2021

An airport in Ittoqqortoormiit is also part of the politically prioritised airport projects, but like Tasiilaq it is not currently included in the scope by Kalaallit Airports A/S. Ittoqqortoormiit is about as remote as possible as it goes for Greenlandic towns. Currently serviced internationally via flights from either Kulusuk or Iceland, connecting to the landing strip at Nerlerit Inaat also known as Constable Point (1,000 m/grav-el). From Nerlerit Inaat one reaches Ittoqqortoormiit either by boat, helicopter or dogsled/snowmobile. Situated next to the world’s largest and deepest multibranched fjord system, visitors are treated to an experience few other places can match in terms of seclusion and uniqueness. Expedition vessels and cruise ships may call to port, but generally the scene is dominated by nature, wildlife and possibilities for adventure. Tourism as a larger business is not estab-lished, however there is a tourist office and willing operators. Like Tasiilaq, the current traffic system can create bottlenecks to/from Ittoqqortoormiit and expeditions to the National Park may bypass the town completely setting out directly from Nerlerit Inaat. A direct flight from Iceland would be more cost effective and open the town to tourist related investments.

Ittoqqortoormiit Airport (Mittarfeqarfiit)

Ittoqqortoormiit AirportCollective estimated construction cost: 800 – 1.400 M DKK [Tasiilaq and Ittoqqor-toormiit]Currently anticipated runway: 650 m/Regional airport Status: Location has been settled. Studies are still ongoing – EIA anti-cipated during 2018, with construction completion in 2021


A new and modern port in Kangerlussuaq is also being discussed. Plans for a port has been agreed upon on a regional level. A larger port (approx. 600 m), with 8 – 12 m depth and ability to accommodate (Voyager Class) vessels up to around 311 m in con-nection with Kangerlussuaq would work in conjunc-tion with the international airport and be particular favourable in terms of transferring cruise ship guests. The port is planned about 10 km further down the fjord than current facilities, hence part of the plan involves road construction. Total construction cost is previously estimated at 40 – 50 M DKK.

EIA hearings were completed in 2017, with construc-tion upstart planned for 2018.

A longstanding wanted item on the regional itinerary has been a road connecting Kangerlussuaq to Greenland’s second largest town of Sisimiut. Total construction cost of a passable twolane gravel road on the 160 km expanse has been estimated to be somewhere between 300 to 500 M DKK. The municipality of Qeqqata has instigated a light approach to this sizeable undertaking by funding an ATV (allterrain vehicle) track following the outline of the proposed road. The ATV-road construction is currently being investigated further by a dedicated taskforce, with a report expected spring 2018. Estimated cost of construction is around 22 M DKK.

Kangerlussuaq serves as the main hub for redirecting and handling incoming international traffic in Green-land. In itself, Kangerlussuaq has plenty to offer visitors and the local hotel is currently renovating and modernising. Road access to mountains, fjords and the icecap is among the settlements attractions. Kangerlussuaq airport, originally build as an American airbase in 1941, is well situated for air traffic in terms of weather and high regularity. With the discussions surrounding new international airports in Greenland, there is some uncertainty regarding the exact future of Kangerlussuaq airport – the area however holds plenty of potential, and several projects are being brought up. Forward mineral projects are situated in Kangerlussuaq fjord.

Kangerlussuaq airport’s runway is nearing the need of an overhaul due to permafrost damages. This relates to about 300 m of the 2,810 m runway, however there are currently no problems regarding a full and safe use of the airport. The exact cost of the overhaul has been the matter of some discussion, ranging from up to 2 B DKK for a completely new tarmac to a 2011- estimate around 150 M DKK from the Transport Commission. In relation to the scope of the project, a survey of the extent of needed repairs has been ongoing in 2016. In Kangerlussuaq and the municipality of Qeqqata, there is a natural vested in-terest in keeping Kangerlussuaq airport and runway.

Kangerlussuaq – runway upkeep, new port and road to Sisimiut

Kangerlussuaq – runway upkeep, new port and road to SisimiutRunway: 150 million DKKATV road: 22 million DKKHarbour: 50 million DKK


Nuuk is at the core of much of Greenland’s policy mak-ing, central administration, businesses, education-al institutions, healthcare, cultural scene and large event venue. The Arctic Capital’s strategy is not a pro-ject as such, but still bears mentioning here due to the scale, scope and potential development projects. The ambitious forwardlooking strategy for the capital of Nuuk was presented in June 2016 by the municipality of Sermersooq. A strategy including plans for serious commercial, recreational and residential develop-ment. Looking towards 2030, the strategy envisions and lays out the basis of being home to 25 – 30,000 inhabitants – almost twice the number of citizens today. Such plans naturally call for attention towards qualified prospects, land allotments, surveying, foun-dation and general land development including road-, sewer- and energy grids. Certainly, also planning, construction and investments. Nuuk’s hydropower plant at Buksefjorden, currently able to produce 45 MW, might not house a fourth turbine. Surging more power for Nuuk might be possible by adding a sec-ond hydropower plant on the same stream, effectively deriving power from the same water stream twice. Power transmission lines installed from the current plant to Nuuk can handle up to 100 MW.

Nuuk harbour and a potential new international air-port is unsurprisingly at the heart of the connectivity of Nuuk’s future, as well as innovation, sustainable energy and buildings that are aesthetically pleasing in harmony with the surrounding nature. In housing alone, the strategy sets out a goal for constructing 4,800 new homes by 2030. Plans are looking towards

connecting a string of islands south of Nuuk to the town and thus considerably expanding the layout of buildable areas. The strategy sets goals for business development within key sectors such as fishery, raw materials, tourism and general commercial growth. Business areas have been identified, creating a com-mercial band with attractive sites for companies.

International funding possibilities to animate and underpin the strategy are currently being explored. Advisory partners are working in relation with the municipality of Sermersooq to bring the vision to life in a sustainable fashion where public partners see that functional requirements are met and investments opportunities are presented in attractive partnerships.

As of October 2017, the Municipality of Sermersooq founded the project dedicated development company Siorarsiofik – Nuuk City Development A/S (NCD).

Board Chairman: Lars Møller-Sørensen

CEO: Jens B. Frederiksen

Website: www.siorarsiorfik.sermersooq.gl

Collective estimated construction cost: 5 B DKK (5 – 700 M DKK via Municipality loans)

Status: Tenders on initial (PPP) construction projects are expected mid-2018

Siorarsiorfik – Nuuk City Development

Nuuk City DevelopmentCollective estimated construction cost: 5 B DKK Status: Tenders on initial (PPP) construction projects are expected mid-2018

http://www.siorarsiorfik.sermersooq.gl


E

NB // NB

E

NB // NB


company is publicly funded by a yearly government grant, regulated once a year, pushing Nukissiorfiit to seek cost efficiency in its operations. With a responsi-bility related to not only producing, but also delivering utilities, Nukissiorfiit is behind a steady stream of pro-ject tenders and look into advancing the use of green energy even further. In Nuuk, for instance, the com-pany is installing charging stations for electric cars as part of a focus on sustainable fueled transportation. Efforts are also ongoing in East and South Greenland in order to surge levels of hydro plant turbine capacity.

Energy and utility needs of the future is another important matter in the onward development of Greenland. This relates to urban expansion and town growth models, to the vital fishing industry, to the mineral sector and to business development in gen-eral.

Nukissiorfiit Nukissiorfiit is the public utility company responsible for producing and delivering electricity, heating and water throughout the entire Greenlandic districts. The

HYDROPOWER AND CLEAN ENERGY

57

Hydropower Greenland is ahead of the curb when it comes to clean energy. Currently around 62% of the country’s electricity needs is covered by hydropower. This is a result of proactive and forwardthinking investments, starting already in the 1990s. Several of the larger towns are serviced through the country’s five hydro plants, however settlements and smaller towns are still relying on oilbased generators. Solutions for dis-placement of oil and fuel are actively being pursued, with investigations into smaller mixed source energy solutions. In the summer of 2017, Nukissiorfiit put pilot hybrid plant into operation. This plant combines wind turbines and PV with a battery bank; hopes are this pilot project will provide data and knowledge which will ease the process of spreading green and sustainable energy solutions throughout Greenland.

Shared energy Active research is going into identifying further water resources for hydropower, in particular how they may correlate with attractive areas for mineral operations. Such surveys must be based on several years, even decades, of data, and as such the current most for-ward mineral project plans in Greenland are still based on fossil fuel generators. Asiaq – Greenland Survey, which is an independent, but nationally owned com-pany is currently working toward mapping resources and accumulating further data.

Green energy everywhere possible By 2030, the goal is that the public energy supply must be derived from renewable energy sources to the fullest extent possible. Therefore, options to intro-duce wind energy in combination with battery bank modules into Greenland’s energy source mix are currently being investigated. Alaska and The Faroe Islands are providing basis for bestpractice and lessons learned. In any way Greenland and its indus-tries are to interchange towards future growth, utility

systems and energy distributing will need to follow a parallel road of expansion and services.

New Sector plan and legislationWith public hearings concluded November 2017, the government of Greenland has put forward a new Sector plan for energy and water supply. This plan sets the strategy for the sector going towards 2030 and includes three main themes: Lowering prices on electricity and water; a public supply based on green energy wherever feasible an and overall modernisa-tion of the current energy system.

Hydropower is a cornerstone in Greenland’s energy sourcing as well as a central element in the forward-looking transformation towards even more sustain-able energy. This includes energy consumption in the cities and by existing industry, but also comes in to consideration in larger scale projects in remote areas – such as mining projects. Hence the Green-landic government has proposed amendments to the current legislation dealing with largerscale hydro resources. The aim being to attract investors to larger (+6 GWh) hydro plant resources by providing more flexible terms. Hearings regarding this legislative pro-posal was completed in December 2017, with expect-ed formal instatement in July 2018.


1

2

3

5

4

1 BuksefjordenSupplies: Nuuk, West GreenlandConstructed: 1990 – 1993 and 2008 (third turbine installed)Construction budget: 1,071 million DKKMain contractor: Nuuk-Power consort Effect: Three turbines producing 45 MW

2 Sisimiut Supplies: Sisimiut, West Greenland Constructed: 2007 – 2010Construction budget: 500 million DKKMain contractor: Ístak (Phil & Son)Effect: Two turbines producing 15 MW

3 Qorlortorsuaq Supplies: Narsaq and Qaqortoq, South GreenlandConstructed: 2004 – 2007Construction budget: 500 million DKKMain contractor: The EnergyConsort Effect: Two turbines producing 15 MW

Hydro plants in Greenland

4 Tasiilaq Supplies: Tasiilaq, East GreenlandConstructed: 2002 – 2005Construction budget: 59 million DKKMain contractor: Phil & Son GreenlandEffect: One turbine producing 1.2 MW

5 Ilulissat Supplies: Ilullissat, West GreenlandConstructed: 2010 – 2013Construction cost: 568 million DKKMain contractor: Phil & Son GreenlandEffect: Three turbines producing 22.5 MW


° Kommune Qeqertalik (North-Northwest) [As of 1 January 2018. Formerly Qaasuitsup Kommunia]

° Qeqqata Kommunia (Northwest) ° Kommuneqarfik Sermersooq (West & East) ° Kommune Kujalleq (South) ° Kanukoka – Association of Greenland’s

municipalities

Naalakkersuisut – The Government of Greenland

Naatsorsueqqissaartarfik – Statistics Greenland

Nukissiorfiit – Greenland’s National Utility Company

Pinngortitaleriffik – Greenland Institute of Natural Resources

Polaroil – Energy and oil supply company

Royal Arctic Line – National shipping and harbour company

Sermersooq Business Council – Kommuneqarfik Sermersooq based business council

SIK – Greenland Trade Union

Sikuki – Nuuk Harbour

Siorarsiorfik – Nuuk City Development company

Sulisitsisut – Greenland Business Association (GE)

TELE-POST – National Communications Provider and Postal Services

Visit Greenland – National Tourism Council

Arctic Umiaq Line – National passenger shipping company

Air Greenland – Greenland’s National Airline

Asiaq – Greenland Survey

Educational Institutions ° Arctic Technology Centre (ARTEK) ° Greenland School of Minerals & Petroleum ° Imarsiornermik Ilinniarfik – Greenland’s Maritime

Centre ° Ilisimatusarfik – University of Greenland

Diskoline – Passenger shipping company

Flugfélag Ísland – Air Iceland

GEUS – Geological Survey of Denmark and Greenland

Greenland Business / Greenland Venture – Business counselling and venture capital

Kalaallit Airports – National Airport development company (Nuuk, Ilulissat & Qaqortoq)

Kalaallit Nunaanni Eqqartuussiviit – Greenland’s Courts

KNAPK – Association of Fishers and Hunters in Greenland

Mittarfeqarfiit – Greenland Airports

Municipalities ° Avannaata Kommunia (North) [As of 1 January

2018. Formerly Qaasuitsup Kommunia]

KEY ORGANISATIONS


OUTLOOK

A British polar explorer once said: “The plans were great, the expectations were even greater, but greatest of all was the disappointment.” Ten years ago, the expectations were great in Greenland. One could not open any Danish or Greenlandic newspaper without reading about the huge mining, oil and gas potential. Investors were just waiting to close deals. The Chinese were coming in big numbers, any day now they said. Today we know better. The articles on Greenland’s mining adventure are fewer and have per-haps also found a more realistic tone. In a way a very understandable development. It has been a steep learning curve for many. Understanding the mining industry and the economic and political DNA of the industry takes time.

It has also taken time to develop an adequate and sound policy framework in Greenland finding the right balance between the interest of the investors, the need to protect the fragile environment and the interests of the people in Greenland.

Even though there are fewer articles in the papers on Greenland these days, there is a certain buzz again. New licenses are issued and more companies are moving into the exploitation phase. In May 2017 the ruby mine in Aappaluttoq in south west Greenland officially opened. In 2018 even more mining projects look promising.

In the Arctic Cluster of Raw Materials, we stand ready to grasp this new brighter window of business opportunities. But the government in Greenland also needs to be ready. We cannot afford any bottle necks in the administration process or any political hickups. The policy framework needs to be carved in stone so we in the near future know the costs and rules of operating in Greenland. The industry is set to go. We have many competences in and outside Denmark and in Greenland. So for the future in Greenland, I allow myself to have great expectations and not to be disappointed.

Mads Qvist Frederiksen Head of Secretariat, ACRM


SOURCES

Argus Media // www.argusmedia.com

Asiaq – Greenland Survey // www.asiaq.gl

Business Potentials – planning for the future of oil, gas and minerals // Published by Sermersooq Business Council 2013

Geological Survey of Denmark and Greenland // www.geus.gl

Greenland Benchmarking Report 2016 // Published by the Arctic Cluster of Raw Materials (ACRM) in collab-oration with the Confederation of Danish Industry (DI) February 2016

Greenland’s oil and mineral strategy 2014 – 2018 // Published by The Government of Greenland – Ministry of Industry and Mineral Resources & Ministry of Environment and Nature February 2014

Grønlands Økonomi – The Economy of Greenland // Yearly reports published by The Economic Council 2010 – 2017

Government of Greenland // Finance Act 2018 – proposal. www.naalakkersuisut.gl & www.govmin.gl & www.inatsisartut.gl

Greenland Statistics // www.stat.gl

How to set up a business in Greenland – Information guide // Published by Deloitte October 2015 (6th edition)

InfoMine // www.infomine.com

Kalaallit Airports // www.kair.gl

London Metal Exchange // www.lme.com

Mineral resource companies: ǐ Arctic Resources // www.arctic-resources.com

ǐ General Nice Development // www.generalnice.com.hk

ǐ Greenland Minerals and Energy // www.gme.gl & www.ggg.gl

ǐ Hudson Resources // www.hudsonresources.ca

ǐ KGHM // www.kghm.com

ǐ North American Nickel // www.northamericannickel.com

ǐ Tanbreez Mining Greenland // www.tanbreez.com

ǐ Ironbark Zinc // www.ironbark.gl

ǐ True North Gems // www.truenorthgems.com

ǐ LNS // www.lns.no

Mineral Resources in the Arctic // Published by NGU – Geological Survey of Norway 2016 (1st edition)

Municipalities

ǐ Qaasuitsup Kommunia // www.qaasuitsup.gl now www.avannaata.gl/ & www.qeqertalik.gl/

ǐ Qeqqata Kommunia // www.qeqqata.gl

ǐ Kommuneqarfik Sermersooq // www.sermersooq.gl

ǐ Kommune Kujalleq // www.kujalleq.gl

Nukissiorfiit // www.nukissiorfiit.gl

NunaGIS digital atlas of Greenland // www.nunagis.gl

Nuuk – Arctic Capital, Capital strategy for Nuuk // Published by Kommuneqarfik Sermersooq June 2016

Sikuki – Nuuk Harbour // www.sikuki.com

Siorarsiorfik – Nuuk City Development // www.siorarsiorfik.gl

The Transport Commission of Greenland – report // Published by The Government of Greenland – Ministry of Housing, Infrastructure and Traffic January 2011 (1st edition)

Turismeudvikling i Grønland – hvad skal der til? – National Sector Plan for tourism 2016 – 2020 // Published by the Government of Greenland – Ministry of Industry, Labour and Trade May 2016

Visit Greenland // www.greenland.com

http://www.argusmedia.com

http://www.asiaq.gl

http://www.geus.gl

http://www.naalakkersuisut.gl

http://www.govmin.gl

http://www.inatsisartut.gl

http://www.stat.gl

http://www.infomine.com

http://www.kair.gl

http://www.lme.com

http://www.arctic-resources.com

http://www.generalnice.com.hk

http://www.generalnice.com.hk

http://www.gme.gl

http://www.ggg.gl

http://www.hudsonresources.ca

http://www.kghm.com



http://www.tanbreez.com

http://www.ironbark.gl

http://www.truenorthgems.com

http://www.lns.no

http://www.qaasuitsup.gl

http://www.avannaata.gl/

http://www.avannaata.gl/

http://www.qeqertalik.gl/

http://www.qeqqata.gl

http://www.sermersooq.gl

http://www.kujalleq.gl

http://www.nukissiorfiit.gl

http://www.nunagis.gl

http://www.sikuki.com

http://www.siorarsiorfik.gl

http://www.greenland.com


BECOME A MEMBER OF THE ARCTIC CLUSTER OF RAW MATERIALSMembershipThe annual membership fee (2018) is 8.000 DKK per company. The membership will get you closer to potential and upcoming projects, B2B meetings with relevant companies operating in the Arctic and access to events and workshops offered by the cluster. In addition to that, your company will get access to a comprehensive business network of both Danish and Greenlandic companies with the common interest of joining forces, exploring possibilities and get more knowledge about the extractive industry in the Arctic region.

Please note that ACRM members wishing to terminate their membership must give three months’ notice.

Members of ACRM commit to share their knowledge and competences with other members to make sure that the industry cluster. Members will get access to all cluster activities, including exhibitions in Canada and workshops in Greenland and Denmark.

For more information: www.acrm.dk

http://www.acrm.dk

Become a member of Arctic Cluster of Raw Materials

www.acrm.dk

http://www.acrm.dk

http://ge.ga.gl

http://www.di.dk

http://dtu.dk

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